On Tuesday the Reserve Bank of Australia will meet to discuss the cash rate once again.
The consensus is that the central bank will elect to keep rates on hold not just at the May meeting, but at least for the rest of the year.
While this is good for borrowers, it certainly isn't for savers.
The good news, however, is that the local share market is home to a large amount of shares that offer above-average dividend yields.
Three which I think are worth buying in May are listed below. Here's why I like them:
Dicker Data Ltd (ASX: DDR)
Dicker Data continues to be one of my favourite dividend shares on the Australian share market. Not only does the computer software and hardware wholesale distributor have a strong track record of increasing its pay out, it also pays its dividend in quarterly instalments. This can be very handy for investors that use dividends as a source of income. In FY 2018 the solid performance of the company means that management intends to lift its dividend by 10% to 18 cents per share. This equates to a forward fully franked 6.2% yield.
Telstra Corporation Ltd (ASX: TLS)
While it is understandable for investors to be a little wary of Telstra after its sizeable dividend cut last year, I think that its proposed 22 cents per share pay out is secure for at least the next couple of years. After which a lot will depend on the arrival of 5G internet, the potential write-down of the NBN, and its cost cutting program. I'm optimistic that these factors will at least allow Telstra to maintain its dividend at current levels. At the current price its shares offer a fully franked 7% yield.
WAM Capital Limited (ASX: WAM)
While Dicker Data has a great track record of dividend increases, it pales in comparison to WAM Capital's record. After increasing its interim dividend earlier this year, the listed investment company is on course to make it nine years of dividend increases in a row. Considering the solid performance of its funds so far this year, I wouldn't be at all surprised to see WAM Capital make it ten in a row next year. At the current price the company's shares provide a trailing fully franked 6.4% dividend.
